By Mark Ogagan
The International Monetary Fund (IMF) has dismissed suggestions that it played a role in Nigeria President Bola Tinubu’s administration’s decision to remove fuel subsidy.
Abebe Selassie, its director for the African Region, stated this while speaking at the IMF and World Bank annual meetings in Washington, D.C.
IMF’s reaction followed widespread criticism of Nigeria’s stringent fiscal reforms, which have triggered inflation and increased economic hardship for many citizens.
The petrol pump price at filling stations rose between N197 to the current price of N1,200 and N1,300, while naira has dropped to as low as N1,700 on the black market.
Selassie (Pictured), stressed that IMF’s involvement with Nigeria is limited to routine economic dialogue rather than policy mandates, Vanguard reports.
He said: “The decision was a domestic one. We don’t have programmes in Nigeria. Our role is limited to regular dialogue, as we have with other nations like Japan or the UK.”
Selassie acknowledged the IMF’s guidance on managing public resources but emphasised that the subsidy removal was part of the Nigerian government’s strategy for economic sustainability.
“Ultimately, these are profound domestic and political decisions that the government had to make,” he added.
Selassie noted that such measures aim to improve public resources for Nigeria’s development. While recognising the immediate challenges posed by the reform, He urged the Nigerian government to consider implementing social support systems to ease the burden on vulnerable groups.
“We recognise the significant social costs involved we encourage that government expand social protection to help those most affected by the transition.”
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